What is the meaning of EMI?

Equated Monthly Installment aka EMI means your monthly payment commitment to the bank for your mortgage.

An EMI consists of two components:

• Interest: A portion of your EMI goes towards paying the interest charged by the bank on your outstanding loan balance.
• Principal: Another part of your EMI goes towards the repayment of the actual loan amount (principal).

The ratio of interest to principal in your EMI may vary over the course of your mortgage term